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JB Hi-Fi's profit, dividend beats forecast

Nicholas Grove  |  15 Aug 2016Text size  Decrease  Increase  |  

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JB Hi-Fi records an 11.5 per cent lift in full-year profit and earnings per share, on the back of an 8.3 per cent rise in total sales and a 5.4 per cent rise in comps.


Retailer JB Hi-Fi Limited (ASX: JBH) on Monday announced a fiscal 2016 net profit of $152.2 million and earnings per share (EPS) of 153.8 cents a share, up 11.5 per cent on the previous year and ahead of Morningstar's expectations for a profit of $145 million and EPS of 144.9 cents a share.

The result was achieved on the back of an 8.3 per cent rise in total sales to $3.95 billion, as well as comparable-store sales growth of 5.4 per cent.

Earnings before interest and tax (EBIT) rose 10.1 per cent to $221.2 million, the retailer said in a statement to the ASX.

"We had a great finish to the financial year and are proud to deliver both net profit and earnings per share up 11.5 per cent," JB Hi-Fi CEO Richard Murray said.

"Particularly pleasing was how we cycled a strong June in the prior year, with good sales driven by tax-time buying."

JB Hi-Fi declared a final dividend of 37 cents a share fully franked, bringing the total dividend for fiscal 2016 to 100 cents a share, up 10 cents on the prior year and ahead of Morningstar's forecast for a payment of 94.2 cents.

The final dividend will be paid on 9 September 2016 to shareholders on record as of 26 August 2016.

JB Hi-Fi also said it will continue with its on-market buyback program in fiscal 2017 with the buyback of a maximum of 0.4 million ordinary shares.

Looking to the remainder of fiscal 2017, Murray said the company is targeting total sales to be in the region of $4.25 billion.

"We continue to invest in our store network, online offering and solutions business. These initiatives, coupled with a strong promotional plan, will position us well for growth in fiscal 2017," he said.

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Nicholas Grove is a Morningstar journalist.

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